Brown Publishing files for bankruptcy
Last Updated: 16:02 March 28, 2012
CINCINNATI - The parent company of the Boulder County Business Report filed for Chapter 11 bankruptcy April 30.
Cincinnati-based Brown Media Holdings Co., The Brown Publishing Co., Brown Publishing Inc. LLC and related subsidiaries filed its request for protection in U.S. Bankruptcy Court for the Eastern District of New York.
Brown seeks to sell most of its assets to a bidder supported by the companies' management. The sale would involve all of the companies' assets in Ohio, Colorado, New York, Texas, South Carolina, Illinois, Iowa, Utah, Arizona and Wyoming.
Twelve other entities were named in the filing including Boulder Business Information Inc., owner of the Boulder County Business Report, which Brown purchased in February 2008. BBI is also part owner of the Northern Colorado Business Report and the Wyoming Business Report, but neither of those publications are affected by the bankruptcy.
"Today's decision to sell was made to help assure that the businesses involved are best positioned to prosper in the years ahead," Roy Brown, chief executive of Brown Media Holdings, said in a press release.
Initial documents filed late Friday list secured debt of $94 million, held by two banks, PNC Bank in Philadelphia and Wilmington Trust Co. in Boston. The bidder is expected to assume a "substantial portion" of that debt, according to the press release.
Brown has asked for court approval of several motions, including $2.5 million of debtor-in-possession financing, use of cash collateral, maintenance of employee payroll and health benefits, and continuation of the companies' cash-management systems. Granting those motions would enable the companies to continue to operate as normal pending the sale, the press release stated.
Boulder County Business Report publisher Christopher Wood said the publication, founded in 1982, is experiencing strong growth in print, online and event sales, despite the bankruptcy filing by the corporate parent.
Other entities in the filing included Utah Business Publishers LLC, Texas Business News LLC, Texas Community Newspapers Inc., Upstate Business News LLC, Troy Daily News Inc., SC Biz News LLC, ARG LLC, Brown Business Ledger LLC, Dan's Papers Inc., Business Publications LLC and the Delaware Gazette Co.
For more information, contact Joel Dempsey, corporate counsel for Brown, at 513-794-5049.
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